US air conditioning manufacturer Carrier Global has agreed to buy Viessmann's air conditioning solutions division for €12 billion to strengthen its position in the heating and cooling business. Carrier will pay 80% of the acquisition price in cash and 20% in shares.

Viessmann Climate Solutions is the main division of the Viessmann Group, which was founded in 1917 by Johann Viessmann as a locksmith company. Today, the company is a global manufacturer of a variety of equipment such as refrigeration cabinets, boilers and other cooling equipment, serving customers such as healthcare facilities and retailers. The company, which is still family owned and operated, has grown significantly since its inception. It is based in Allendorf, a municipality in the state of Hesse with just under 6,000 inhabitants, has around 14,500 employees and last year achieved sales of EUR 4 billion. Following the sale of the heat pump business, the company will have around 4,000 employees and is expected to generate annual sales of just under EUR 1 billion.

Florida-based Carrier Global is a global leader in smart climate and energy solutions with a stock market value of approximately $34 billion. The acquisition is part of a larger transformation of Carrier, which spun off from US multinational conglomerate United Technologies Corporation in 2020.

The transaction is expected to be completed by the end of this year. However, Viessmann's decision to sell its heat pump business to a US competitor has attracted interest from the Berlin government and the deal will be reviewed amid concerns over the possible loss of important industries that are vital to the country's energy transition plans.